relationship between hrm practices among the employees...

Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-03, (March 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664 (JAMR) http://www.jamrpublication.com email id- [email protected] 28

Relationship between HRM Practices among the employees of Select Public and Private

Sector Banks of Nellore Region

Dr. P.Thanuja1

Assistant Professor, Department of Business Administration, PBR VITS, Kavali

Dr.Suja S Nair2

Associat professor,HOD

Vikarma simhapuri University, Department of Business Management

Mrs. T.Nagalaxmi2

Assistant Professor, Department of Business Administration, PBR VITS, Kavali

Abstract:

This research paper portrays the relationship between human resource management

practices in Public (SBI) and Private Sector banks (ICICI) and their outcomes in Nellore District. Human

Resource Management Practices are vast. But this study covers parameters namely Recruitment and

Selection, Performance Appraisal, Training and Development, Compensation, Employee Retention,

Promotions & Transfers, Career Planning & Turnover Intention of the employees of all branches of

both SBI and ICICI banks. This study covers the analysis by using Correlations.

Key words: Introduction, Reviews, Methodology, Analysis and Results

1.Introduction:

The time is changing and so is business environment. The ongoing process of liberalization,

privatization and globalization has made business environment highly competitive and complex. As a

result of these changes human resource environment is also changing, which in turn have changed

human behavior in organizations. Therefore, the changing environment has necessitated a

perspicuous and through study of relationship between human resource management practices. Of

late, the human resource management has become important function of management. It is human

dimension which has emerged as a means of accelerating growth having relationship with all sorts of

organizations.

2.Review of Literature:

Abishek (2017) in his study revealed that Job Satisfaction is a key concept. The scope for job

satisfaction is much higher in PSBs because they are more involved with development banking than

private sector banks. Also PSBs give immense opportunity to staffs to be of service to needy people

like students, pensioners, blue collar workers, migrant laborers etc –which can lead to job

satisfaction.




Journal of Advance Management Research, ISSN: 2393-9664 (JAMR) http://www.jamrpublication.com email id- [email protected] Page 129

Esha Mehta (2016) in her study found that public and private sector banks differ with respect

to their background and work culture. It has been observed that the work culture of public sector

banks was based on the concept of socioeconomic responsibility, in which profitability is secondary.

On the other hand, private sector banks work towards profitability. Because these differences

between the sectors hold an important factor in shaping the work culture of an organization, it needs

to be explored how they would likely influence by their HRM Practices.

Gaikwad & Deshmukh (2015) in their study on “HRM Practices in Selected Public and Private

Sector Banks” described the issues that are involved related to HR. The authors in their study discussed

about HR practices and their relation with both Public and Private sector banks. The study revealed

that human resources are important part of any organization and needs to be managed effectively.

Shaukat et al (2015) in their study on “Impact of Human Resource Management Practices on

Employees Performance” has described that employees are important part of any organization

contributing towards the achievement of goals. The aim of the study is to examine the impact of

compensation, recruitment and selection, career planning, performance appraisal and selection on

employee performance. The authors concluded in their research paper that it is necessary to review,

revamp and rejuvenate the human resources in the organization

The study conducted by Al Qudah et al (2014) on “The Effect of Human Resources

Management Practices on Employee Performance” has showed the effect of human resources on the

performance level of employees. The main factors which have impact are recruitment and selection

and compensation on employee performance. The authors have also described that the success and

failure of any organization depends on its employees. The results revealed that there is positive

relation between both compensation and employee performance and recruitment and selection and

employee performance.

KC Chakraborty, 2012 “HR Management in Banks-Need for a new perspective” concluded that

Human Resource Management is important for banks because banking is a service industry.

Management of risks and Management of people are two key challenges facing banks. He has focused

more on the emerging needs of HRM in banking sector in today’s world.

Shikha N. Khera (2010) pointed out that over recent years there has been an increasing

interest in the field of human resource management. Currently, the literature encourages the

consideration of human resources as strategic factors, not only because they play important role in

strategy implementation, also because they are beginning to be reckoned as sources of sustainable

competitive advantage. Relationships between human resource management and productivity have

been studied from different perspectives. This study is an attempt to investigate the extent to which

Commercial Banks of India differ on aspects of human resource management practices and the key

Human Resource Practices contributing to employee productivity from a sample of 184 respondents

from three commercial banks of India (one foreign sector, one private sector and one public sector

bank).





3. Research Methodology:

3.1 Statement of the Problem:

The banking industry in India is dynamic. There are many challenges to be faced in the wake

of this scenario. Recruitment and Selection form the base for an employee to enter into an

organization. Training and Development facilities enhance their performance which provide a way for

increase in Compensation package. Employee Retention practices form the base for organizations in

retaining the talent pool. Further their performance is to be appraised continuously in assessing their

skills, so that it helps in Promotions & Transfers for the employees. Employees are entrusted with

different roles and responsibilities in the banks. Employee Retention, Promotions & Transfers, Career

Planning & Turnover Intention enable the organizations to hold the employees by assigning various

roles and responsibilities efficiently which help them in taking up higher challenges. In this study, the

researcher studies the relationship between HRM practices like Recruitment and Selection,

Performance Appraisal, Training and Development, Compensation, Employee Retention, Promotions

& Transfers, Career Planning & Turnover Intention among the employees of SBI and ICICI banks in

Nellore District. The aim is to assess the relationship between human resource management practices

among the employees of Public and Private sector banks.

3.2 Need for the Study:

Human Resource Management is important for banks because banking is a service industry.

In what way the correlations exists between the select human resource practices among the

employees of select Public and Private sector banks is analysed, so that better way is to be practiced

wherever is required.

3.3 Objectives of the Study:

To assess and compare the relationship between human resource practices among the

employees of select Public and Private sector banks.

3.4 Hypothesis:

The following Null Hypotheses are framed and tested for the study.

H0 a: There exists no relationship between HRM practices in Public sector bank

H0 b: There exists no relationship between HRM practices in Private sector bank

H0c: There exists no relationship between HRM practices in both Public and Private sector banks

3.5 Methodology:





The study is based on survey method. Primary data are collected from the field directly by

using structured Questionnaire. The secondary data are collected from books and websites. 542

respondents are selected by adopting Convenience sampling techniques for the study covering all the

branches of SBI and ICICI in Nellore district of AP. Only two levels of Management were considered for

the study. Correlation Analysis is used for analysis of data.

3.6 Sampling Design:

State bank of India is selected as Public sector bank and ICICI bank is selected as Private sector

bank for this study. 440 employees from SBI and 102 employees from ICICI bank are considered for

this research. The collected facts are analysed by using Correlations . 5 point Likert scale is used in the

study.

3.7 Limitations of the Study:

The study is based on select human resource management practices only.

The study is limited within the area.

4. Result Analysis:

This section shows the existence of correlations between the dimensions of Human Resource

Management Practices (R-Recruitment, S-Selection, P-Performance Appraisal, T-Training &

Development, C-Compensation, RE- Retention, PR-Promotions & Transfers, CP- Career Planning &

Turnover Intention) among both Public and Private sector banks.





H0 a: There exists no relationship between HRM practices in Public sector bank

Table No.4.1- Correlations among HRM practices in Public sector bank

R S P T C RE PR CP

R

Pearson

Correlation 1 .274** .396** .292** .375** .398** .244** .176**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 440 440 440 440 440 440 440

S

Pearson

Correlation 1 .373** .463** .036 .181** .178** .211**

Sig. (2-tailed) .000 .000 .455 .000 .000 .000

N 440 440 440 440 440 440

P

Pearson

Correlation 1 .380** .465** .533** .324** .270**

Sig. (2-tailed) .000 .000 .000 .000 .000

N 440 440 440 440 440

T

Pearson

Correlation 1 .275** .257** .383** .281**

Sig. (2-tailed) .000 .000 .000 .000

N 440 440 440 440

C

Pearson

Correlation 1 .384** .418** .230**

Sig. (2-tailed) .000 .000 .000

N 440 440 440

RE

Pearson

Correlation 1 .472** .204**

Sig. (2-tailed) .000 .000

N 440 440

PR

Pearson

Correlation 1 .365**

Sig. (2-tailed) .000

N 440

CP

Pearson

Correlation 1

Sig. (2-tailed)

N

**. Correlation is significant at the 0.01 level (2-tailed).





From the table 4.1, it is found that Correlations exists between the dimensions of HRM

Practices in the Public sector bank. According to the opinion of employees of Public sector bank there

is low positive correlation between Recruitment & Selection (.274), Recruitment & Performance

Appraisal (.396), Recruitment & Training and Development (.292), Recruitment and Compensation

(.375), Recruitment & Employee Retention(.398), Recruitment and Promotions & Transfers

(.244).Recruitment & Career Planning and Turnover Intention(.176) with the values ranging between

0.398 to 0.176.

In the opinion of employees of Public sector bank there exists moderate positive correlation

between Selection and Training and Development (.463), whereas there is a low positive correlation

between Selection & Performance Appraisal (.373), Selection and Employee Retention (.181),

Selection and Promotions and Transfers (.178), Selection and Career Planning and Turnover Intention

(.211) with the values ranging between 0.463 to 0.178. But there is no relation between Selection and

Compensation (.036).

Based on the opinion of employees of Public sector bank there is moderate positive

correlation between Performance Appraisal and Compensation (.465), Performance Appraisal and

Employee Retention (.533). But there exists a low positive correlation between Performance Appraisal

and Training and Development (.380), with Promotions and Transfers (.324), Career Planning and

Turnover Intention (.270) ranging from .533 to 0.270.

There is low positive correlation between Training and Development and Compensation (.275),

Training and Development and Retention (.257), Training and Development and Promotions and

Transfers (.383), Training and Development and Career Planning and Turnover Intention (.281) ranging

from 0.383 to 0.257 based on the opinion of employees of Public sector bank.

According to the opinion of employees of Public sector bank there exists moderate positive

correlation between Compensation and Retention (.384), Compensation and Promotions & Transfers

(.418) whereas there is a low positive correlation between Compensation and Career planning and

Turnover Intention (.230) ranging from 0.418 to 0.230.

There exists moderate positive correlation between Retention and Promotions & Transfers

(.472) whereas there is low positive correlation between Retention and Career planning & Turnover

Intention (.204) based on the opinion of employees of Public sector bank ranging from 0.472 to 0.204.

In the opinion of employees of Public sector bank there is low positive correlation between

Promotions & Transfers and Career planning & Turnover Intention with 0.365.

H0a is rejected as there exists relationship between HRM practices in Public sector bank.

H0 b: There exists no relationship between HRM practices in Private sector bank

From the table 4.2., it is known that Correlations were found between the dimensions of HRM

Practices in the Private sector bank. According to the opinion of employees of private sector bank

there is high positive correlation between Recruitment & Selection (.745), Recruitment & Performance

BANK = SBI





Appraisal (.906), Recruitment & Training and Development (.879) with the values ranging between

0.906 to 0.745. But there is no relation between Recruitment and Compensation (.018), Recruitment

& Employee Retention (.013), Recruitment and Promotions & Transfers (.063), Recruitment & Career

Planning and Turnover Intention (.006).

In the opinion of employees of Private sector bank there exists high positive correlation

between Selection & Performance Appraisal (.751), Selection and Training and Development (.697)

whereas there is low positive correlation between Selection and Promotions and Transfers (.263) with

the values ranging between 0.751 to 0.263. There is no relation between Selection and Compensation

(-.003), Selection and Employee Retention (-.066). But there exists low positive correlation between

Selection and Career Planning and Turnover Intention (.209) at 5% level.

There is high positive correlation between Performance Appraisal and Training and

Development (.890). But there is no relation between Performance Appraisal and Compensation

(.091), with Career Planning and Turnover Intention (.052), with Employee Retention (-.114), with

Promotions and Transfers (-.019) based on the opinion of employees of Private sector bank.

According to the opinion of employees of Private sector bank there is no correlation between

Training and Development and Compensation (.177), Training and Development and Promotions and

Transfers (.011), Training and Development and Career Planning and Turnover Intention (.064) and

between Training and Development and Retention (-.059).





There exists low positive correlation between Compensation and Career planning and

Turnover Intention (.222) at 5% level and there exists no correlation between Compensation and

Retention (.073), between Compensation and Promotions & Transfers (-.124) based on the opinion of

employees of Private sector bank.

In the opinion of employees of Private sector bank there exists low positive correlation

between Retention and Promotions & Transfers (.331) and there is no relation between Retention and

Career planning & Turnover Intention (-.074).

Table No.4.2- Correlations among HRM practices in Private sector bank

R S P T C RE PR CP

R

Pearson Correlation

1 .745** .906** .879** .018 .013 .063 .006

Sig. (2-tailed) .000 .000 .000 .859 .900 .530 .955

N 102 102 102 102 102 102 102

S

Pearson Correlation

1 .751** .697** -.003 -.066 .263** .209*

Sig. (2-tailed) .000 .000 .976 .509 .008 .035 N 102 102 102 102 102 102

P

Pearson Correlation

1 .890** .091 -.114 -.019 .052

Sig. (2-tailed) .000 .363 .253 .849 .604 N 102 102 102 102 102

T

Pearson Correlation

1 .177 -.059 .011 .064

Sig. (2-tailed) .076 .553 .909 .525 N 102 102 102 102

C

Pearson Correlation

1 .073 -.124 .222*

Sig. (2-tailed) .466 .216 .025 N 102 102 102

RE

Pearson Correlation

1 .331** -.074

Sig. (2-tailed) .001 .457 N 102 102

PR

Pearson Correlation

1 .192

Sig. (2-tailed) .053 N 102

CP

Pearson Correlation

1

Sig. (2-tailed)

N

**. Correlation is significant at the 0.01 level (2-tailed). BANK=ICICI





There is no correlation between Promotions & Transfers and Career planning & Turnover

Intention with 0.356 in the opinion of employees of Private sector bank.

H0b is rejected as there exists relationship between the HRM practices in Private sector bank.

H0C: There exists no relationship between HRM practices in both Public and Private sector banks

Table 4.3 Correlations among HRM practices in Public and Private sector banks s

R S P T C RE PR CP

R

Pearson Correlation

1 .396** .456** .391** .214** .275** .172 .206**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 542 542 542 542 542 542 542

S

Pearson Correlation

1 .406** .502** -.032 .163** .143** .247

Sig. (2-tailed) .000 .000 .454 .000 .001 .000 N 542 542 542 542 542 542

P

Pearson Correlation

1 .420** .411** .512** .255** .288**

Sig. (2-tailed) .000 .000 .000 .000 .000 N 542 542 542 542 542

T

Pearson Correlation

1 .193** .248** .299** .340**

Sig. (2-tailed) .000 .000 .000 .000 N 542 542 542 542

C

Pearson Correlation

1 .341** .321** .278

Sig. (2-tailed) .000 .000 .000 N 542 542 542

RE

Pearson Correlation

1 .399** .222**

Sig. (2-tailed) .000 .000 N 542 542

PR

Pearson Correlation

1 .356**

Sig. (2-tailed) .000 N 542

CP

Pearson Correlation

1

Sig. (2-tailed)

N

**. Correlation is significant at the 0.01 level (2-tailed).

From the table 4.3., it is known that Correlations were found between the dimensions of HRM

Practices in both the banks. According to the opinion of employees of both banks there is moderate





positive correlation between Recruitment & Performance Appraisal(.456), whereas there exists a low

positive correlation between Recruitment & Selection(.396), Recruitment & Training and

Development(.391), Recruitment and Compensation(.214), Recruitment & Employee Retention(.275),

Recruitment & Career Planning and Turnover Intention(.206), Recruitment and Promotions &

Transfers (.172) with the values ranging between 0.456 to 0.172.

There exists moderate positive correlation between Selection & Performance Appraisal (.406),

Selection and Training and Development (.502), whereas there is low positive correlation between

Selection and Employee Retention (.163), Selection and Promotions and Transfers (.143), Selection

and Career Planning and Turnover Intention (.247) based on the opinion of employees of both banks

with the values ranging between .502 to .143. But there is no relation between Selection and

Compensation (-.032).

According to the opinion of employees of both banks there is moderate positive correlation

between Performance Appraisal and Training and Development (.420), Performance Appraisal and

Compensation (.411), Performance Appraisal and Employee Retention(.512) whereas there exists low

positive correlation with Promotions and Transfers(.255), Career Planning and Turnover Intention

(.288) ranging from .512 to 0.255.

In the opinion of employees of both banks there is low positive correlation between Training

and Development and Compensation (.193), Training and Development and Retention (.248), Training

and Development and Promotions and Transfers (.299), Training and Development and Career

Planning and Turnover Intention (.340) ranging from 0.340 to 0.193.

There exists low positive correlation between Compensation and Retention (.341),

Compensation and Promotions & Transfers(.321), between compensation and Career planning and

Turnover Intention (.278) based on the opinion of employees of both banks ranging from 0.341 to

0.321.

According to the opinion of employees of both banks there exists low positive correlation

between Retention and Promotions & Transfers (.399), Retention and Career planning & Turnover

Intention (.222) ranging from 0.399 to 0.222.

There is low positive correlation between Promotions & Transfers and Career planning &

Turnover Intention with 0.356 based on the opinion of employees of both banks.

H0C is rejected as there exists relationship between the HRM practices in both Public and

Private sector banks.

5.1. Findings & Discussions:

According to the opinion of employees of Public sector bank there is low positive correlation

between Recruitment & Selection, also with Performance Appraisal, Training and Development,

Compensation, Employee Retention, Promotions & Transfers, Career Planning and Turnover

Intention.

In the opinion of employees of Public sector bank there exists moderate positive correlation

between Selection and Training and Development, whereas there is a low positive correlation





between Selection & Performance Appraisal, Employee Retention, Promotions and Transfers,

Career Planning and Turnover. But there is no relation between Selection and Compensation.

Based on the opinion of employees of Public sector bank there is moderate positive correlation

between Performance Appraisal and Compensation, also with Employee Retention. But there

exists a low positive correlation between Performance Appraisal and Training and

Development, also with Promotions and Transfers, Career Planning and Turnover Intention.

There is low positive correlation between Training and Development and Compensation, also

with Retention, Promotions and Transfers, Career Planning and Turnover Intention based on

the opinion of employees of Public sector bank.

According to the opinion of employees of Public sector bank there exists moderate positive

correlation between Compensation and Retention, also with Promotions & Transfers whereas

there is a low positive correlation between Compensation and Career planning and Turnover

Intention.

There exists moderate positive correlation between Retention and Promotions & Transfers

whereas there is low positive correlation between Retention and Career planning & Turnover

Intention based on the opinion of employees of Public sector bank.

In the opinion of employees of Public sector bank there is low positive correlation between

Promotions & Transfers and Career planning & Turnover Intention.

According to the opinion of employees of private sector bank there is high positive correlation

between Recruitment & Selection, Performance Appraisal, Training and Development. But

there is no relation between Recruitment and Compensation, Employee Retention,

Promotions & Transfers, Career Planning and Turnover Intention.

In the opinion of employees of Private sector bank there exists high positive correlation

between Selection & Performance Appraisal, also with Training and Development whereas

there is low positive correlation between Selection and Promotions and Transfers. There is no

relation between Selection and Compensation, Employee Retention. But there exists low

positive correlation between Selection and Career Planning and Turnover Intention at 5%

level.

There is high positive correlation between Performance Appraisal and Training and

Development. But there is no relation between Performance Appraisal and Compensation,

also with Career Planning and Turnover Intention, Employee Retention, Promotions and

Transfers based on the opinion of employees of Private sector bank.

According to the opinion of employees of Private sector bank there is no correlation between

Training and Development and Compensation, also with Promotions and Transfers, Career

Planning and Turnover Intention and Employee Retention.

There exists low positive correlation between Compensation and Career planning and

Turnover Intention at 5% level and there exists no correlation between Compensation and





Retention, also with Promotions & Transfers based on the opinion of employees of Private

sector bank.

In the opinion of employees of Private sector bank there exists low positive correlation

between Retention and Promotions & Transfers and there is no relation between Retention

and Career planning & Turnover Intention.

There is no correlation between Promotions & Transfers and Career planning & Turnover

Intention in the opinion of employees of Private sector bank.

According to the opinion of employees of both banks there exists moderate positive

correlation between Recruitment and Performance Appraisal whereas there is low positive

correlation with Selection, Training & Development, Compensation, Employee Retention,

Career Planning & Turnover Intention and Promotions & Transfers.

There exists moderate positive correlation between Selection and Training & Development,

also with Performance Appraisal whereas there is low positive correlation with Employee

Retention, Promotions & Transfers, Career Planning & Turnover Intention based on the

opinion of employees of both banks. But there exists no relation with Compensation.

It is found that there exists moderate positive correlation between Performance Appraisal and

Training & Development, also with Compensation and Employee Retention in the opinion of

both public and private sector bank employees. But there is low positive correlation with

Promotions & Transfers, Career Planning & Turnover Intention.

There is low positive correlation according to the opinion of employees of both banks between

Training & Development and Compensation, also with Employee Retention, Promotions &

Transfers and Career Planning & Turnover Intention

In the opinion of employees of both banks there exists low positive correlation between

Compensation and Employee Retention, also with Promotions & Transfers and Career

Planning & Turnover Intention.

There exists low positive correlation between Employee Retention and Promotions &

Transfers, also with Career Planning & Turnover Intention based on the opinion of employees

of both banks.

According to the opinion of employees of both banks there is moderate positive correlation

between Promotions & Transfers and Career Planning & Turnover Intention.





5.2. Conclusion:

The present study focuses on the relationship between select human resource management

practices in select public and private sector banks in Nellore region. In this study the select human

resource management practices are recruitment and selection, performance appraisal, training and

development, compensation and employee retention. Further from the correlation analysis, the study

concludes that there exists relationship between the dimensions of human resource management

practices among both public and private sector banks.

References:

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2. Abhishek Anand, B. N. Balaji Singh & Dr. Bijoya Ganguly, (2017), “A Comparative Study of

Human Resource Development Policies With Reference To Job Satisfaction of Employees of

Bank of India and Housing and Development Financial Corporation (HDFC) Bank”,

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5. Gaikwad, S., &Deshmukh, U. (2015). HRM Practices in Selected Public and Private Sector

Banks. Glacier Journal of Scientific Research,118. Retrieved September 19, 2015, from

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8. Shikha N. Khera (June, 2010) Human Resource Practices and their Impact on Employee

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9. www.sbi.co.in and www.icici.com

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http://www.glacierjournal.org/upload/papers/1440239850-HRM

http://www.icici.com/

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